Concept of Bill of Material

Bill of material form an important component of the Production Planning SAP PP module. In many SAP interviews candidates are asked to explain the concept of Bill of material.

 Q). What is a Bill of Material BOM in the SAP Production Planning PP module?

Answer: In a layman’s language, a Bill of Material is an complete list of components that make up a finished manufactured product. The Bill of material consists of the item number of each component, quantity required in the manufacture of a component and the unit of measure of the item. Such individual components which make up a manufactured product has a specific name in SAP. They are called Bill of Material Items BOM items. SAP R/3 allows creation of various categories of BOM Bill of Material. Some of the categories of BOM include, document BOM, material BOM, equipment BOM, Sales Order BOM and Functional location BOM.

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